Requirement Compute the price, efficiency, and flexible-budget variances for direct materials and direct manufacturing labor. First compute the price, efficiency, and flexible-budget variances for direct materials. Label each variance as favorable (F) or unfavorable (U). Price variance Efficiency variance Flexible-budget variance Now compute the price, efficiency, and flexible-budget variances for direct manufacturing labor. Label each variance as favorable (F) or unfavorable (U). Price variance Efficiency variance Flexible-budget variance Data Table Direct Direct Materials Manufacturing Labor 89,000 88,000 Costs incurred: Actual inputs x actual prices 212,000 S 217,000 Actual inputs x standard prices Standard inputs allowed for actual output x standard prices 227,000 87,000